Finance director stresses need to get accurate numbers for budget

City Finance Director Rachelle McQuiston laid out an overall picture of her goals for the Ridgecrest city budget during a city council budget strategy meeting Monday afternoon.

Comment

By Jack Barnwelljbarnwell@ridgecrestca.com

Ridgecrest Daily Independent - Ridgecrest, CA

By Jack Barnwelljbarnwell@ridgecrestca.com

Posted Mar. 14, 2013 at 12:00 PM
Updated Mar 14, 2013 at 1:42 PM

By Jack Barnwelljbarnwell@ridgecrestca.com

Posted Mar. 14, 2013 at 12:00 PM
Updated Mar 14, 2013 at 1:42 PM

City Finance Director Rachelle McQuiston laid out an overall picture of her goals for the Ridgecrest city budget during a city council budget strategy meeting Monday afternoon.

"I know everyone is impatient for numbers and I am trying to get them as quickly as possible," McQuiston said.

McQuiston filled the empty seat left by former finance director Tyrell Staheli only three weeks ago.

McQuiston said she was in the process of sifting through all the data, and after three weeks on the job and having spoken with auditor Pun & McGeady about the information.

"I'm not getting a lot of strong evidence of what I've seen at this point that we should be in panic mode," McQuiston said.

She said the auditor was under the impression that the city was spending more than it was taking in. So long as the city watched its spending and brought in more revenue, the city would be fine.

"You're not in a situation where you can't pay your bills, and I don't see us in a situation where we can't pay our bills," McQuiston said.

She made a sales pitch on people buying locally, pointing out that sales tax was a significant portion of the city's revenue stream.

While she agreed with finding every opportunity to secure more revenue — an aspect she advocated while working for Kern County Public Health — she stressed it was best to get through preparing FY 2013-14 budget first.

"At this point let's get our information and let's get it accurate, let's make decisions and move on," she said.

When Vice Mayor Chip Holloway asked about a two-year budget, McQuiston said it was plausible but was still tackling an overwhelming amount of data.

"Everybody wants everything right now and I am really concerned that pulling numbers out the air and making decisions based on bad numbers is not the way to go," she said.

Blowing Bankruptcy

Rumors Away

McQuiston said she had heard many rumors about the city going into bankruptcy and stamped the idea out.

"From what I see right now, bankruptcy is a moot point," she said. "It is very highly unlikely we would get to that point where bankruptcy is an option."

She said it might get to the point where the Parks and Recreation, Ridgecrest Police and Fiance departments might be unhappy with a lack of staff that affected services.

Holloway weighed in on his own study of bankruptcy.

"My understanding of analyzing the few cities in California in terms of bankruptcy is usually a result of long-term debt and liabilities," Holloway said.

Holloway requested a long-term projection of the city's debt compared to other cities and its budget process in spending one-time money compared to borrowing money for paying its bills.

Page 2 of 2 - "It's a disservice to run around bantering terms like bankruptcy when we're talking about the city of Ridgecrest, because we do not have long-term debt," he said.

Balancing Act, Reserves

Mayor Dan Clark inquired about the possibility of a reserve fund in light of the last two years and the need to balance a budget.

Ridgecrest had to balance its 2011-2012 budget in September 2012 to avoid a cash deficit in the general fund. In December, it again had to make midyear adjustments to the FY 2013 budget due to a shortfall in projected revenue.

"At the end of this budget cycle, is that insanity going to end?" Clark asked.

McQuiston stressed her background leaned very heavily to budget projections and would plan on routinely go over the city's budget process.

"I'm an accountant and I don't like surprises so I'm going to do everything I can to avoid surprises at the end of the year," she said.

Clark asked about the expectations of a 5 percent general fund reserve for the end of the budget cycle based on the numbers she had reviewed.

"I wouldn't count on a reserve," McQuiston said. "At this point I believe we can make budget."

She said was planning a review for the next council meting with recommendations for cuts if necessary, a good idea of where the city might end the current fiscal year, and a basic picture of where the city might be next year.

"I want to stress, (that is) a vague picture, not an absolute picture of what to hopefully expect next year," she said.